US Senate Committee Approves Central America Tree Trade Deal
The free-trade deal with Central America and the Dominican Republic cleared a major hurdle with approval from a key US Senate committee, setting the stage for a floor vote this week and a July showdown in the House of Representatives.

The Senate Finance Committee, by voice vote, "favorably recommended" legislation that would implement the trade pact with the Dominican Republic, Nicaragua, El Salvador, Honduras, Costa Rica and Guatemala.

The move, which clears the way for a full Senate vote as early as this week, came despite the lack of a final deal designed to assuage the sugar industry's concerns that the pact will result in a significant spike in US sugar imports.

Senator Craig Thomas of Wyoming who has criticized the pact over its potential impact on the sugar industry, opposed the recommendation and voiced a "no" vote.

But the accord faces a stormy passage through Congress given the opposition of many Democrats and some Republicans who argue it will cost US jobs to cheaper places in the region.

US Trade Representative Rob Portman urged Senate approval for the agreement known as CAFTA-DR, the top trade priority of President George W. Bush, when it debates the measure this week following the green light given by the powerful finance committee.

"CAFTA-DR is a great agreement that levels the playing field for American workers, farmers and businesses, will boost US exports and will promote stability and democracy among our friends and neighbors," Portman said.

"Step by step, we're making good progress and building momentum for its successful passage," he said.

Senate approval for the trade pact may prove hard, but its passage through the House of Representatives will be even harder. In the lower chamber, the measure still has to pass the committee stage.

The sugar industry notably is fighting a fierce battle against US access for duty-free sugar imports from the countries covered by the accord.

The House Ways and Means Committee is expected to vote on the measure this week. If it clears the panel, it could see final passage later in July by the full House.

Under the fast-track trade negotiating authority that Congress granted the White House in 2002, trade agreements can't be modified by the House or Senate. Lawmakers can only vote up or down on legislation that would implement trade agreements negotiated by the administration.

The White House formally submitted the legislation to Congress last week. Under fast-track, that gives Congress 90 working days to approve or reject the legislation.

Hopes for full Senate passage of the trade pact got a boost when Senator Jeff Bingaman, a New Mexico Democrat who was previously undecided on the pact, told fellow committee members he would back the agreement despite misgivings over labor standards and other components of the deal.

Bingaman said the administration had given him assurances it would spend at least 30 million dollars to help Central American subsistence farmers adjust to an expected influx of US agricultural products in addition to 40 million to promote labor laws in the region.

Senator Blanche Lincoln of Arkansas also voted in favor but expressed disappointment that "the administration chose to force this agreement and pass it by the slimmest of margins."

Backers say the pact will generate nearly four billion dollars in new sales by US companies and create some 25,000 new jobs in its first year.

The White House is pressing hard for ratification, and lobbying has been intense from industry groups representing textiles, sugar and high technology. Labor and other activist groups have also been vocal.